Tax Treaty


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Tax Treaty

A treaty between two countries governing double taxation and other matters when a company or individual owes taxes to both countries. Tax treaties are written because double taxation with no exceptions could result in a decrease in trade between the two countries. Most countries (except tax havens) have entered into tax treaties with their trading partners and others. A tax treaty is also called a bilateral tax agreement.
References in periodicals archive ?
Treasury Department announced the entry into force dates of tax treaty protocols with two key trading partners.
(1) The pending bilateral treaties and protocols include: the proposed tax treaty with Chile, signed in 2010; the proposed tax treaty with Hungary, also signed in 2010; the Swiss and Luxembourg treaty protocols, both signed in 2009; the proposed protocol with Spain, updating the tax treaty signed in 1990; the proposed Polish Tax Treaty replacing the treaty signed by the United States and Poland in 1974; and the Japanese treaty protocol signed in 2013.
According to the BIR, registered alien employees may apply for preferential tax rates if they are a resident of a country which has a tax treaty with the Philippines.
Assuming the CRA is successful in its challenge, Franco-Nevada estimates on a preliminary basis that it would be subject to federal and provincial tax of approximately C$12.8M, or $9.7M, plus any applicable penalties and interest but before any relief under the Canada-Mexico tax treaty. "The tax treaty between Canada and Mexico is intended to avoid double taxation.
PARIS -- On behalf of the Government of Pakistan, Ambassador Moin-ul-Haq signed Organization for Economic Cooperation and Development (OECD's) for the Multilateral Convention to Implement Tax Treaty Related measures to Prevent Base Erosion and Profit (BEPS) at OECD Headquarters, Paris.
Changes to the treaty with the Asian financial centre had been widely expected after India this year similarly re-drafted a 33-year old tax treaty with Mauritius.
citizens and permanent residents ("green-card" and statutory resident, non-immigrant visa holders) may benefit by contributing to a foreign pension plan in a jurisdiction with favorable provisions and an Income Tax Treaty with the U.S.
The government of India, which blacklisted Cyprus three years ago citing its failure to disclose information on cash transfers by Indian nationals suspected of tax evasion with operations on the island, approved the renegotiated double tax treaty three months ago, according to India's finance ministry.
The Philippines currently has 40 tax treaties-mostly DTAs and tax exchange information agreements-in force, while a tax treaty with Turkey will take effect in 2017.
The author covers the historical development of international taxation, tax treaty interpretation, the general framework of Article 21 of the OECD Model Convention, the demarcation between Article 21 and other distributive rules of the OECD model, and many other related subjects.
Many of the 2016 Model updates reflect technical improvements developed in the context of bilateral tax treaty negotiations and do not represent substantive changes to the prior model.
In the case of Italy, Angara pointed out that the renegotiations of the tax treaty were prompted so as to remove the Philippines from the "blacklist" of tax havens, which had posed a considerable barrier to Italian investments into the country.